INFO – Life is too short to take yourself seriously

FORMS

Legal and Resolution Options

Buyout and Refinance: Ask the non-paying co-owner to sign a quitclaim deed relinquishing their property interest, then refinance the mortgage solely in your name. [1]
Partition Lawsuit: If the co-owner refuses to cooperate or pay, file a partition case through the York County Government court system to request a court-ordered sale of the property. [1, 2]

Types of Titles in SC

Where there is more than one purchaser, those purchasers must decide how they will hold title. Some may wish to hold title in the name of an LLC in which they are members, but where they wish to hold title in their individual names, title is “joint” and the purchasers must select from among the joint ownership options. In South Carolina, joint ownership can take any of three (3) forms as follows:

Tenants in Common: Upon the death of one owner, that owner’s interest passes through his estate (pursuant to the terms of a Will or, in the absence of a Will, pursuant to the laws of intestacy). The other features of this form of ownership are:

Any owner can convey his interest without permission/involvement of any other owner;
The owners can hold unequal ownership (90%-10%, etc.);
There can be more than two (2) owners;
The creditors of any owner can reach that owner’s interest; and
It is subject to partition.**

Joint Tenants with Rights of Survivorship: Created by SC Code §27-7-40. Upon the death of one owner, the death certificate is filed at the courthouse and that owner’s interest automatically passes to the surviving owner(s). In other words, it does not pass through an estate.

The other features of this form of ownership are:

The owners must hold equal ownership (50%-50% or 1/3-1/3-1/3, etc.);
There can be more than two (2) owners;
The creditors of any owner can reach that owner’s interest;
If there are only two owners and they are married to each other, an Order of Divorce converts the joint tenancy to a tenancy in common; and
It is subject to partition.**

Tenants in Common with Rights of Survivorship (a/k/a indestructible right of survivorship): Upon the death of one owner, the death certificate is filed at the courthouse and that owner’s interest automatically passes to the other owner(s). In other words, it does not pass through an estate. The other features of this form of ownership are:

There can be more than two (2) owners;
The owners can hold unequal ownership (90%-10%, etc.);
No owner can convey his interest without the consent/involvement of the other tenant(s);
Arguably, the creditors of one owner cannot reach property held in this manner; and
It is not subject to partition.**

An informal loan agreement

in York County, South Carolina, is a binding contract—even if it is between friends or family—provided it contains a clear offer, acceptance, and consideration (the exchanged money). While handwritten notes or oral promises can technically be binding, putting the terms in writing is crucial for legal protection under state laws. [1, 2, 3]

⚠️ South Carolina Legal Guardrails

Before finalizing any informal loan in York County, you must account for these distinct state laws:

Maximum Usury Rate: Under South Carolina Code § 34-31-20, the maximum legal interest rate for informal or unwritten contracts is 8.75%. Charging above this limit can result in severe legal penalties, including the forfeiture of all interest. [1]
Statute of Limitations: If the borrower defaults, you have exactly three (3) years from the date of the missed payment to file a lawsuit in a York County court to collect the debt. [1]
York County Small Claims Court: If the loan amount is $7,500 or less, any legal dispute can be handled relatively quickly through the York County Magistrates Court (Small Claims), avoiding the high fees of Circuit Court.

🗒️ Core Elements to Include

To ensure your informal agreement is enforceable, draft a document that includes these specific components: [1, 2]

Party Details: Full legal names and physical addresses of both the lender and borrower. [1, 2]
Loan Amount & Date: The exact principal amount borrowed and the date the funds are transferred. [1, 2]
Repayment Schedule: Clear terms detailing whether it will be paid via weekly/monthly installments or as a lump sum by a specific deadline. [1, 2, 3, 4]
Interest Terms: The explicit interest percentage (staying under the 8.75% limit). If it is a 0% interest loan, explicitly write “0% interest” so there is no ambiguity. [1, 2, 3]
Governing Law: A clause stating: “This agreement shall be governed by and construed in accordance with the laws of the State of South Carolina. Any legal actions must be filed in York County, SC.” [1]

PROMISSORY NOTE & LOAN AGREEMENT [1]

Date: [Date]
Principal Amount: $[Dollar Amount] [1]

1. Parties: This agreement is made between [Lender Name] (“Lender”), residing at [Lender Address], and [Borrower Name] (“Borrower”), residing at [Borrower Address]. [1, 2]

2. Promise to Pay: Borrower promises to pay Lender the principal amount of $[Amount] plus an annual interest rate of [Percentage, max 8.75]%. [1, 2]

3. Repayment Schedule: Payments will be made [Monthly/Weekly/Lump sum] in the amount of $[Amount] starting on [Date] until the full balance is paid on or before [Final Due Date]. [1, 2]

4. Governing Law: This note shall be governed by South Carolina law. Any disputes will be resolved in the courts of York County, South Carolina. [1]

Lender Signature: ___________________________ Date: ____________
Borrower Signature: _________________________ Date: ____________ [1]

Note: While not strictly required by SC law for a simple personal loan, having the document signed in front of a Notary Public or witnessed by an independent third party highly strengthens your case if it is ever contested in court.

Collections on a promissory note

To collect on an informal loan agreement in York County, SC, you must first send a formal written demand letter, and if the debtor fails to pay, file a breach of contract lawsuit in the appropriate local court. [1, 2, 3]

Because South Carolina has a strict three-year statute of limitations for both oral and written contract disputes (S.C. Code § 15-3-530), you must initiate legal action within three years of the date the debtor missed their scheduled payment. [1]

The recovery process depends on the size of the loan and your collection strategies.

1. Send a Formal Demand Letter

Before filing a lawsuit, send a written demand letter to the borrower by Certified Mail with a Return Receipt requested. [1]

What to include: State the exact amount owed, reference the terms of your informal agreement (such as text messages, emails, or oral terms), provide a hard deadline for payment (e.g., 10 to 14 business days), and state that you will pursue legal action if they fail to comply.
Why it matters: While not strictly required by South Carolina law to initiate a lawsuit, local York County Magistrate Court judges heavily expect to see a documented attempt to resolve the issue before trial. [1]

2. Determine Which York County Court to Use

Where you file depends entirely on the total amount of money the borrower owes you:

For loans up to $7,500 (Small Claims): File your case in the York County Magistrate Court. This is an informal forum designed for self-representation (pro se). The typical filing fee is approximately $80, plus an additional $40 fee to have the York County Sheriff’s Office formally serve the paperwork to the defendant. [1, 2, 3, 4, 5]
For loans over $7,500: File your case in the civil division of the York County Court of Common Pleas. Because formal rules of civil procedure and evidence apply strictly here, hiring a licensed civil litigation attorney is highly recommended. [1, 2]

3. Gather Evidence for Your Case

To successfully collect on an informal loan, you must prove to the judge that a binding contract existed and that money changed hands. Bring three physical copies of the following to your hearing: [1, 2, 3]

Bank statements, Venmo/Zelle receipts, or canceled checks showing the initial transfer of money.
Printed text messages, emails, or social media messages where the borrower explicitly acknowledges the debt or asks for time to pay.
Written logs or receipts of any partial payments the borrower already made.

4. Understand South Carolina’s Difficult Collection Laws

Winning a judgment in court simply means the judge certifies that the borrower owes you money; it does not automatically force them to pay. South Carolina is known as one of the most debtor-friendly states in the U.S. because wage garnishment for standard civil consumer debts is strictly prohibited. [1, 2, 3]

If the borrower refuses to pay after you win your case, you must actively enforce the judgment using the following methods: [1]

File a Real Property Lien: Record your magistrate judgment transcript at the York County Clerk of Court’s Office. This places a legal lien against any real estate the debtor owns in York County for a duration of 10 years, preventing them from selling or refinancing their property without paying you. [1, 2, 3, 4]
File an Execution Against Property: After 30 days, file an Execution order through the court to direct the York County Sheriff’s Office to seize and sell the debtor’s non-exempt personal property (such as secondary vehicles or luxury items). Note that South Carolina heavily shields basic personal property and primary vehicle equity from being seized. [1, 2, 3, 4]
Execute a Bank Account Levy: Seek a court-ordered charging order to directly freeze and pull funds out of the debtor’s known bank accounts. [1, 2]

To tailor this advice, what is the exact total amount of the loan, and do you have any written proof like text messages or bank transfers?

EXAMPLE OF LOAN AMOUNT – 50% due (have spreadsheet)